Bitcoin ATM scams have cost Americans over $10 million per month this year

The Federal Trade Commission has published a report that aims to warn people about Bitcoin ATM (or BTM) scams, which have apparently increased tenfold from 2020 to 2023. Americans had lost $65 million to fraud losses involving BTMs within the first six months of this year alone, and the actual amount may be a lot more than that, since most scams go unreported. Further, losses due to BTM scams have been exceptionally high, with people reporting a median loss of $10,000 over the past six months.

In most of the BTM scams reported, the bad actors impersonated government and business entities, as well as tech support representatives. Almost half of the instances reported started with a phone call, though some victims were fooled by fake security warnings from online ads, pop-ups and emails from scammers pretending to be from Microsoft or Apple.

Some scammers pretend to be government agents or employees from utility providers, for instance, and tell people that they have to settle their bills by paying through a nearby BTM. Others pretend to be feds or bank agents and scare would-be victims into believing that their accounts are being targeted by hackers, so they have to transfer their money to a “secure account.” Those are just some examples of how the bad actors can fool their victims.

According to the commission’s warning, scammers tend to send their targets to specific BTM locations, showing that they prefer some operators over others. Those preferences have changed over time, though, likely due to the fraud prevention measures crypto companies introduce to their systems. Whatever operator the scammer chooses, they send QR codes to their victims, since BTMs typically require depositors to scan one linked to the recipient’s account. Those QR codes, of course, send money straight to the scammers’ wallets.

As you can guess, most of the BTM scam victims are older people. The FTC says $46 million of the total losses involving BTMs in the first half of 2024 — that’s 71 percent of the overall amount — came from people over 60. If you take BTMs out of the equation, most of the losses from cryptocurrency fraud were reported by people between 18 and 59 years old who fell victim to fake investment opportunities.

If you have an older person in your life, it’s best to warn them about potential BTM scams before they get targeted, because recovering the money they lose from these schemes would most likely be impossible. In addition, it may be time for all BTM operators, as well as the supermarkets, convenience stores and other locations where the machines are installed, to post warnings next to BTMs about these scams.